Le Message March 2009

8/9/2019 Le Message March 2009

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EDITOR:Andrew Tan

DESIGNERS:Fabian Kong

Karthik Balasubramaniam

SUB-EDITORS:Chow Wen Xin

Leong Si Ya LaraLa Cam Anh, Emily

Maurice Quek Zhong Liang


3/12

Editors NoteIt seems that times are always bad. There was the 1997 AsianEconomic crisis, then the dot-com bubble bursting in 2000, theSeptember 11 attack on the USA, and now the US mortgage loans-precipitated crisis. The years in between are merely recoveryphases , and just when one thinks that the recovery is almostcomplete, yet another crisis comes along.

Some people question the importance of reading the news,

reasoning that it is not tested in examinations or that it doesntaffect them. Well, in this interconnected world, where a slowdownin one country affects other countries halfway around the globe, itis impossible to stay unaffected. Even if you cant really prevent acrisis by knowing about it, you can surely prepare for it. Scientia est

potentia - Knowledge is Power.

With this issue of Le Message, we hope to bring the knowledge toyou.

Andrew Tan

Publications Director34th Management Committee


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Putting reasons aside, the credit crunch hasled inexorably to a startup smash. Startupsin the US are affected sorely, visibly by thenancial meltdown, though it seems likeEurope, though dented, has less affectedareas to show. Lets see how startups andventure capital rms are reacting.

On Oct 8th, 2008, the angel investor RonConway advised his companies on theirretreat strategies during the credit crunch.Not that he is losing condence; havingpromised to keep investing, he is justdescribing how to prepare storm provisions.On the same day Sequoia Capital sentan erudite 56 slide presentation to itsportfolio companys CEOs, mentioning thehuge US foreign debt, the US consumer

having barely enough to spend (they callit a low disposable personal income) andcorporate earnings in Silicon Valley downby 18 percent. No one seems to havemuch money, and that makes venturecapital rms like Sequoia Capital worry alot: their presentation ends: Get Real, GoHome. Benchmark Capital put up its ownstorm warning signs a day later, telling itscompanies to get tight control of their

nances, which, seems like jargon for keepthe cash under the oorboards. So muchfor the top.

TechCrunch, the newsblog tracking thefortunes of tech ventures and startups,has a particularly depressing onlinesurvey/counter tracking the number oflayoffs post-meltdown. Go here if you are

interested: http://www.techcrunch.com/layoffs/. The survey operates by tipoffsfrom workers, and October seems to be the

month when the credit crunch nally madetech companies hurt where it matters most:the work force. Interestingly enough, evenRon Conways letter (also available herein Tech Crunch.) says, in several words, ifyou cant raise money, cut costs, lowerburn rates that is, re a few. Benchmarks

long advisory letter zeroes in on the samedispensable commodity, labour. It makessense in a way, though. How else wouldyou cut costs? Save electricity by switchingoff workstations? Walk to ofce? Use lessof the internet? The rich get poorer, thepoor get broke.

Layoffs, low investor condence,downturns in public markets, etc are the

new buzz words, and they all speak thesame language of penury to tech startups, which depend more than anything oninvestors and money in the kitty early on.Fledgling startups are likely to be affected:they will cease to exist, go into suspendedanimation at best.

Can we probably decide that this is much

like the 1999 dotcom crash, and that theweb, and Cyber, Inc. will be back, upgraded,updated and never better?

The Credit Crunch and

the Asian EntrepreneurBy Karthik Balasubramaniam


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In this regard, Benchmark Capitals letterto its portfolio companies is highlyilluminating. Observing that the 1999crash was worse in that it was caused bytech speculators themselves, hence kicking

the spiral further inward on the tech eld,it also understands that the recent crunchwill be felt for much longer, affecting as itdoes public markets the world over. Whatis more important, when money is lostfrom all sides, it is hard to put it in what isat present only a small, stumbling startup.And money, as is apparent from the creditcrunch, is being lost from all sides, from allpockets.

The letter in fact, even points to an upsidethough. Money might be getting lost, butstill, we can depend on angel investors, andthe deep core of venture capital rms likeBenchmark, whose investors are generallyprivate, conservative and extremely long-range in their thinking. These are unlikelyto cut off funds from the very tech startups that might play a pivotal role in the

reversal of the recession later on.

Which brings us to Europe and its ostensiblereaction to the credit crunch. Europe isplaying its cards with a very wooden pokerface indeed. Everyone has a bad hand, andthe Old World doesnt see the need toscream and agonize along with the others.They are, instead, going for the jugularquickly and cleanly, with Fleck selling out,and other companies quietly shuttingdown and reapplying to companies.

More importantly, though, the Europeanmilieu has thrown up the usual whydidnt you say so earlier reaction, witha prominent young investor accusingSequoia of not warning his company soonenough. However, Allen and Co, another

VC rm, did cry wolf early enough, andFon, his company, was able to make theadjustment soon enough.

Hence, we have two major centers oftechnological entrepreneurship rockingunder the credit crunch and taking all themeasures required to stay low and survive.How does this affect Singapore?

Asia has not been affected much bythe credit crunch, least of all Singapore,what with Singaporean investment fundsTemasek and GIC buying up huge sharesof Merill Lynch and UBS. Sitting on hugepaper losses they might be, but let themarket turn around, and Asian moneywill have bailed Western banks. But mostAsian products are bought by the US

customer, whose pockets are empty rightnow, perhaps ultimately affecting even thetech venture balance in Asias favour, whatwith money and opportunity now at Asiasleash. They may not be able to buy ourideas or services, but then again, they cantbuy anything. Perhaps we could start theinvesting, and the buying, and eventuallypresent to a recovered world a lot of Asiantech companies, a lot of western banks

owned mostly by Asians. Buy Asian, beAsian.

To conclude, we here have a niceopportunity to put our stereotypicalcaution and perseverance to great effect.A well known complaint of most Asians Iknow is that we are behind, by too manyyears. The edices and institutions built inthose years of advantage are now empty,for us to move into if we want, and we aremoving in to stay. Where else can we getour minds into?


6/12

Policy Studies:Not for the Faint-HeartedBy Genim Tan

Policy Studies is an inaugural debate series targeted at undergraduatesacross Singapore. It provides an avenue for youths to analyse localgovernment policies and engage in meaningful crossre. More specically,the theme for 2009 - Moral and Ethical Dilemmas in Policymakingbrings into the spotlight the elusive dimension of morality in the domainof public policy. Steeped in controversy, this competition is not for thefaint-hearted.

Policy Debates will commence in the subsequent week. The top two teamsthat emerge from the Preliminary Rounds and Semi-Finals will proceedto vie for the Championship trophy. The Grand Finals will certainly be abattle of brains and a war of words, keeping our audience at the edge oftheir seats.

Policy Studies will take place in March 2009. It is open to allundergraduates in local universities (NUS, NTU, SMU and SIM), includingforeign students on exchange programmes. Keen to join but have zeroexperience in debate? Fret not! The competition format is catered toabsolute beginners - anyone with a passion for public policy is welcometo participate. Furthermore, the motions will be released ahead of theactual debates to allow teams to construct their cases. Visit www.nuspa.org to nd out more!


7/12

Chancellors Challenge ShieldBy Ho Kee Meng

The Chancellors Challenge Shield (CCS)is an annual Current Affairs and GeneralKnowledge competition inaugurated in1992 by the late Dr Wee Kim Wee, formerPresident of the Republic of Singapore andthen Chancellor of National University ofSingapore (NUS). This event aims to raisethe awareness of current affairs amongst

youths today while providing a platformfor interactions amongst educationalinstitutions. Besides raising awarenessabout current affairs amongst youths, theCCS is an opportunity to provide a chancefor intertactions amongst educationalinstitutions.

Past editions of CCS have been well-received by participants and have been

graced by notable TV personalitiesincluding Channel News Asia news anchorSuzanne Jung, NMP Eunice Olsen andparliamentarians such as Ms Penny Low.

The latest edition of the CCS was held on the23rd February 2008 at NUS. The competitionattracted a total of 186 participants from19 schools, ranging from the Universities,

Junior Colleges, Polytechnics and schoolsinvolved in the Integrated Programme. MrZaqy Mohamad, Member of Parliament for

Hong Kah GRC, graced the event as theGuest of Honour. A highly engaging nalround saw Anglo-Chinese Junior Collegeultimately emerging as the winner of thecompetition, beating their competitorsfrom Rafes Institution and Jurong JuniorCollege.

The next CCS, which would be held inFebruary 2009, promises to be just as

exciting. Students would be tested on theirknowledge of current affairs, includingareas such as politics, economics andeven arts and entertainment. Do look outfor publicity posters regarding CCS 2009to be sent to schools by January. In themeantime, enquiries can be directed [email protected]. We look forward to seeingyou at the Challenge!


8/12

Heritage Conservation

In SingaporeBy Lara Leong

Landscape is a lens to study society. Itembodies the shifting social, economicand political values and ideologies.The Istana, for example, used to housedescendents of the Sultan, but sincehaving been gazetted as a nationalmonument, former tenants were

chased out. And it has since become amuseum and restaurant. It is sad thatthis is happening because what is leftof our heritage is merely the shell. Andthe commercialization of our heritageis harsh, reecting the fact thatSingapores economy takes precedenceabove all. The Istana is probably stillwell-conserved, unlike Wayang Kulit,

because of its commercial value ontop of its heritage value. This makesus think that the state might be too-practical, in the sense that whateverthat has no economic value will not beretained.

What is intriguing is the strain borne

by the place from their multiple

identities. Arab Street, for example,has to be an historical landscape,but also a tourist attraction and thisstrain stems, precisely, from thiscontradiction where on the one hand,traditional avor is evaporating --former shops are no longer there.

Bustling crowds ceased to exist, andyet it is still propagated as a traditionto tourists. And on the other hand,commercialization draws more touriststhan locals to this place. An epitomewould be the Hippo Bus (a tourcoach) weaving around the perimetersof this place, dropping tourists off. Theoriginal avor as the-place-to-go-for-

textiles contests commercialism. Suchmultiple identities contradict the avorand intention of this place.Through this, it can be seen thathistoriography can be manipulatedthrough landscapes. By gazettingand honoring certain places, fencing

them up, it brings focus to part of ourheritage. And whatever that is beyondthe fence, is typically neglected orforgotten. This underlines the intentionof the government to play up certainaspect of culture that is coherent withnational aim, and downplaying otheraspects that are not in-line with thestates aims. Such manipulation of

landscape emphasizes its power. Itcan even alter the impression andknowledge amongst the indigenous


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locals, which explains why we hadsupercial understanding of KampongGlam in the rst place.

Upon reection, it might not be the

case that culture is evaporating intothin air, but rather, they are evolvinginto some new set of hybrids,building on and modifying from theolder traditions, to suit the tempo ofcontemporary life. Since we do notknow what to look out for, it is harderto see the forthcoming gains andeasier to notice the current culturalloses. Selective attrition thus favorsthe cultures best suited to preservingthe cultural creations of the past.


10/12

PAYC 08 No ReservationsBy Kenneth Leo

The annual Political Association Youth Camp was one of the majorprojects undertaken by NUSPA. It is one of the many camps held in NUSto welcome the freshmen and to provide a platform for them to socializeand forge friendships that will see them through their university life. Thecamp also serves to introduce the freshmen to NUSPA and give them aglimpse of what to expect should they opt to become one of us. I ampleased to say that we were able to reach out to 40 over campers this

year.

This year, the camp was named No Reservations in the hope of bringingout a different side of the politically savvy freshmen, whom some mayconsider to be not so cool. Well, to all those who see us in such a light,happy faces and the silly acts caught on camera are testaments thatpolitically aware students are also capable of having a good time.

Unlike the previous years, this year the camp was shifted from theusual Sentosa back to our campus. This was done in view of getting thefreshmen to sooner adapt themselves to life on campus. However, thechange in location was compensated by the better quality activities andmeals provided, which was made possible due to the funds freed from achalet stay in Sentosa.

Some of the camps key highlights included an entire days cycling at

East Coast Park, an evening of board-gaming at Mind Cafe, and a dayof sun and fun at the Siloso Beach. The camp ended on a high with anale dinner at Vivocitys Marche where each camper ate all he or shecould with the allocated budget of thirty dollars per person. Feedbacksfrom the campers have reected that the quality of food and activitiesprovided in the duration of their stay was value for the camp fees paid.

Kenneth Leo

Youth Camp Director33rd Management Committee


11/12

LuxuriateBy Low Tian Leng

According to the Merriam-Webster OnlineDictionary, luxuriate is the action ofgrowing profusely, developing extensivelyand/or indulging oneself and derivinggreat enjoyment from the luxury andcomfort that it offers. The recent nancial

storm that started from the breakdown ofFreddie Mac and Fannie Mae and eruptedin the bankruptcy of the Lehman Brothersgoes to show the sphere of inuence ofglobalization and the inevitability that achange in Americans well-being is able toupset the rest of the world.

A nancial crisis unmatched sincethe Great Depression , Larry Elliott,

economics edit for The Guardian. For anon-economics academic and studentto understand the entire process of theCredit Derivative system that resulted inthe mess we are in today is not an easyfeat. On March 17, 2008 Alan Greenspanwrote an article for the Financial TimesEconomists Forum entitled We will neverhave a perfect model of risk in which he

argued: We will never be able to anticipateall discontinuities in nancial markets. Heconcluded: It is important, indeed crucial,

that any reforms in, and adjustments to,the structure of markets and regulationnot inhibits our most reliable andeffective safeguards against cumulativeeconomic failure: market exibility andopen competition. The pervasiveness ofglobalization is apparent; the immenseinstability in the United States hasperturbed many countries in the World,

such as Iceland, United Kingdom, Sweden,and Ireland. Even in Asia, China, Japan,Taiwan and South Korea are also severelyimpacted; governments were obliged tobail-out or to pledge the national reservesas a guarantee for the Banks.

It is important to seek out the root causeof the problem, such that we can installand establish systems that the liberal

banking systems cannot self-correct.How many years of Wall Street glamourfostered the luxuriating lifestyle andculture in developed countries? Did theinvisible hands by Adam Smith fail? Ordid Karl Marxs Capital pre-empt thefailure of Capitalism came true? In themidst of the United States PresidentialElections, we are hearing speculations of

Barack Obama being a socialist in times ofeconomic and nancial turmoil. There aremany questions that we can contemplate.Although we must not presume thismayhem in the markets to be part-and-parcel of civilizations, it is human nature toforgive and forget. What we must not dois to forgive and forget the mistakes thatwe should be constantly reminded of.


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EssayWritingCompet:tion 2009THEME: Negotiating Self-IdentityEssay Writing Competition is open to all tertiary students. Dateline forsubmission of articles for Essay Writing Competition is 28th Feb 2009 at5 pm . Articles can be submitted online to publications@nuspa .org.Enquiries can be emailed to the above-mentioned address.Word limit: 800 wordsJudging Criteria:Usage of the theme (50%)Language and Grammar (30%)Creativity (20%)Prizes:$150 for 1st prize$100 for 2nd prize$50 for 3rd prizeSelected entries will befeatured in the NUS Students'Political Association (NUSPA)Newsletter, Le Message.

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Le Message March 2009

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